Just one local resident was evacuated, while a couple more people returning to their properties were turned away.
"We told them to go to a coffee shop... they'll be back in tonight, " said Cera spokesman Brendan Winder, Port Hills land clearance project manager.
Crowds gathered below the house as a 30-tonne excavator began clawing at it from behind.
The plan was to bring it down on its own footprint within a few hours tonight, Mr Winder said.
Late last week, Cera discovered the building was "pretty distressed" and it was monitored over the weekend.
"We had another look at it again this morning... and the decision was made to knock the building over today," Mr Winder said.
He said they needed to "react quickly", given how it had deteriorated in recent days.
Given how many other hillside homes there are on the Port Hills, Cera knows "this may not be the last".
"Hopefully it is, but we need to be aware that there could be others out there as well," said Mr Winder.
"We'll go back and review our systems around how we're going to make sure we know more about these properties, but I don't have any particular concerns about any properties just now."